Fosun Pharma Rebounds After Denying Chairman Arrest Rumors

Nov. 22 (Bloomberg) -- Shanghai Fosun Pharmaceutical Group
Co., a maker of modern drugs and traditional Chinese medicine,
rebounded in Shanghai trading after the company’s parent denied
speculation that its Chairman Guo Guangchang had been detained.

The rumors are “unfounded,” parent Fosun International
Ltd. said in an e-mailed statement. The company will take all
necessary steps to get to the bottom of the situation, according
to the statement, which cited Guo.

Fosun Pharma shares traded 3.1 percent lower at 18.04 yuan
as of 2:41 p.m. local time, after earlier tumbling as much as 10
percent, the worst intra-day slide since October 2009.

“The rumor of the chairman being arrested is probably the
main reason affecting the company’s shares,” said Sam Chi Yung,
a strategist at Delta Asia Securities Ltd. in Hong Kong. “This
kind of rumor affects stock prices quite a lot.”

The 21st Century Business Herald reported the rumors that
Guo had been barred from leaving Hong Kong on its website. Guo
was in Beijing visiting China Datang Corp. Chairman Chen Jinxing
today, the company posted on its official Weibo page after the
rumors surfaced.